Controlling Costs in an Uncontrolled Marketplace

Last week The Wall Street Journal published a full-page article entitled “Why Americans Spend So Much On Health Care – In 12 Charts” …kind of summarizes my blog over the past year. Tax and employer subsidies mask the real cost of healthcare with little incentive to “shop” for efficient care. Providers are opaque with their pricing while their consolidation creates better bargaining leverage and stronger entrenchment in the system.

In the meantime, as compared with other developed countries, Americans have lower life expectancies, higher infant mortality and a significantly higher death rate from obesity; yet comparable death rates from cancer, respiratory and heart disease. The New York Business Group on Health reported that in the United States average costs per employee are expected to increase to $14,800 in 2019, up 5% – and employers on average will pay 70% of this.

Self-insured employers are the most nimble in battling rising costs. A number of employers are changing to contracting arrangements with narrow networks, and risk-based provider contracts and direct contracting have become common among large employers. Larger employers are aggressively deconstructing costs to get leverage on pharmacy, stop loss premiums and disease-specific charges.

In 2019, small employers will see some relief as (despite projections to the contrary) small rate increases and even some decreases are being seen on initial rate filings. And I am curious to see how Association Health Plans will impact participation as many states like New York are simply disallowing these purchasing pools.

Health insurance consulting used to be an easy business. Reflecting on costs approaching 20% of our gross domestic product, it is no longer easy, and the quality of your adviser is critical in staying ahead of the trends.

About Craig Hasday

Craig Hasday is President of EPIC Northeast Benefits and President of Frenkel Benefits. As part of EPIC Insurance Brokers & Consultants (EPIC), Frenkel Benefits is one of the largest privately held independent employee benefits brokers in the United States.
Craig is a nationally recognized healthcare leader, who has sat on the national advisory boards of Aetna, UnitedHealthcare, Cigna and Anthem; as well as the regional advisory boards of most major carriers. He is currently on the MetLife and GeoBlue national advisory boards, is a legislative group member of the Council of Insurance Agents and Brokers and has been appointed to the MetLife National Broker & Consultant Summit. With current and former roles involved in lobbying and advisement on the legislative landscape, Craig is deeply engaged with the issues and intricacies surrounding healthcare delivery. He is an appointee to Governor Cuomo’s Regional Stakeholder Exchange Board and member of the NAHU Principals Council – as a liaison to the White House, U.S. Department of Health and Human Services (HHS), the U.S. Treasury and Congress – to advise on the practical issues associated with healthcare reform.
He has served as legislative chairperson for the New York State Association of Health Underwriters. Craig is also a former board member of the NAHU Education Foundation and has sat on the Global and Domestic Benefit Advisory Boards of Assurex Global. He is on the board of the NAHU Foundation and is a member of the UnitedHealthcare Children’s Foundation Regional Board of Directors.
Craig was honored with the International Benefits Network’s 2017 Service Excellence Award and selected as a 2015 Power Broker by Risk & Insurance Magazine. He is a frequent speaker on a broad array of issues affecting the insurance industry and is an adjunct professor in the New York University Masters of Human Capital Management Program.
Craig has appeared on CBS, NPR and other news programs as a healthcare commentator and is widely published and interviewed by the media as a benefits expert. As a judge for the 2014 and 2015 Business Insurance Benefit Manager of the Year awards, he contributes his benefits expertise toward selecting this prestigious award’s winner. Craig can be heard on WCBS Newsradio 880 during the daily business report speaking about healthcare and employer strategy in a segment titled, FrenkelySpeaking, which is based on the Frenkel Benefits’ blog.
Craig joined Frenkel in 1992, as the manager of what was then the Life & Employee Benefits department. Under his leadership, Frenkel Benefits has expanded almost twelvefold in revenue, now serving almost 800 clients across the U.S. and globally. Now together with EPIC, Frenkel Benefits is a significant contributor to EPIC’s benefits business.
Craig is a New York State CPA, formerly working in the New York office of a big-four accounting firm. He has experience as an audit and tax professional, chief financial officer and a small business owner. This diverse background brings an in-depth appreciation for the challenges facing clients.

Send us a Question

GET THE WHITEPAPER

Please be aware that this does not represent legal or tax advice and is only Frenkel's interpretation of the laws, regulations and statutes. It is highly recommended that you seek the advice of your legal and tax professional as to the applicability of this information to your particular situation.